By 
Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, emphasized the commitment of the 10th Senate of the Federal Republic of Nigeria to ensure the optimal realization of the objectives set for the Asset Management Corporation of Nigeria (AMCON) since its establishment by the Federal Government in 2010.
Expressing concern over the substantial interest rates paid by AMCON to the Central Bank of Nigeria (CBN), Abiru warned that the persistently high rates could impede the achievement of the anticipated AMCON sunset. He emphasized that the current practice, where AMCON pays up to six per cent to the CBN and charges additional percentages on obligors facing business challenges, was not conducive, especially given AMCON’s current exposure of approximately N4.7tn.
In a statement released by AMCON’s spokesperson, Jude Nwauzor, Abiru affirmed that the Senate Committee would initiate discussions with the CBN and relevant stakeholders. The aim is to reevaluate the AMCON funding model, scrutinize the interest components, and streamline processes to expedite the resolution of the substantial burden currently shouldered by AMCON. The committee’s proactive approach aims to foster a more sustainable financial framework for AMCON and align with the original objectives set by the Federal Government in 2010.
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